Alberta Freezes Government Salaries As Canada's Oil Patch Enters Second Year Of Recession
On Wednesday, we documented the astonishing prices beleaguered Canadians are now forced to pay for groceries thanks to the plunging loonie.
Oil’s inexorable decline has the Canadian dollar in a veritable tailspin and because Canada imports the vast majority of its fresh food, prices on everything from cucumbers to cauliflower are on the rise, tightening the screws an already weary shoppers.
Soaring food prices are but the latest slap in the face for Canadians and especially for Albertans who have been hit the hardest by 13 months of crude carnage. Resources account for a third of provincial revenue and with oil and gas investment expected to have fallen over 30% in 2015, Alberta’s economy has is expected to contract for the foreseeable future.
The economic malaise has had a number of nasty side effects including soaring property crime in Calgary, rising food bank usage, and sharply higher suicide rates.
With the outlook for oil prices not expected to improve in the near-term, ATB now says the province faces two long years of recession. “The pain is going to be concentrated in the first half of the year. But we don’t really see any ending in sight to a downturn at least until the end of the year. So we are calling for another contraction,” ATB’s Chief Economist Todd Hirsch says in The Alberta Economic Outlook Q1 2016 report.
“This low price environment continues to discourage new investment and spending and has weighed down employment — not only in the oilpatch, but throughout most sectors of the province," Hirsch continues. "This downturn is longer in duration certainly than 2009 was which was a very quick downturn but very short-lived. This one is going to linger on longer."
Indeed. Here are some charts from the report which underscore the magnitude of the sharp reversal in fortunes.
It's against this backdrop that we get the latest sign of the times in Alberta where Finance Minister Joe Ceci has just announced a two-year wage freeze for non-union government employees.
"The move will freeze the salaries — and movement within salary grids — for roughly 7,000 senior officials, managers and other non-unionized government employees at 2015 levels until at least April 2018," As the Calgary Herald reports. "The freeze means senior government officials, including trade representatives, board chairs and deputy ministers, won’t get a scheduled 2.5-per-cent salary hike this April put in place by the former Progressive Conservative government."
“This is not a decision we made lightly," Ceci told the press. "The Alberta Public Service is made up of hard working and dedicated women and men who do valuable work each and every day in the service of Albertans. However, to maintain stability and protect jobs within the public service, we must deal with the economic realities we’re facing.”
As The Herald goes on to note, "the NDP government posted a record $6.1 -billion deficit in its fall budget released last October and, for the first time in two decades, is set to take on more debt to pay for operational spending."
"During a time of massive private sector job losses, Albertans want the government to reduce spending while protecting front-line services” Wildrose Leader Brian Jean said, praising the decision.
Right. But don't expect jobless Albertans to be overly sympathetic to the plight of the government employees subject to the salary freeze. The senior workers affected will all still make between $110,246 and $286,977.
Stay positive Canada...
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The government executives at the top could still get their raises and bonuses if they would downsize some of the people below them. I hear it's worked in other businesses.
"Alberta Freezes Government Salaries "
Isn't this considered hate speech in Canada - a jailable offense?
More like an arctic-micro-aggression I think.
Total safe-zone violation...
...well, I try...lol.
goddamn ice beaners
oh, wait....
" We froze some folks. "
Al Gore will argue that.
CORRECTION PLEASE! This is NOT the second year of a recession, not even close.
This year is the eighth year of the longest, and greatest depression mankind has ever experienced. This super depression will result in the demise of the petrol dollar and the end of American world dominance. It will end around the middle of this century.
And now the good news -- oil will be cheap.
You are forget "Summer of Recover"... You are already forget "Summer of Recover"? Maybe political leader is not repeat enough time, is not say loud enough, "Summer of Recover". Are you not adhere to state mandate truth?
"wage freeze for non-union government employees"
... the keyword is NON-UNION worker ... move on, nothing to see here ... unless you are a minimum wage janitor, the chances are you are an union worker and getting your annual pay raise as scheduled.
Have you ever see a .gov employee getting an actual pay cut? Oh please ...
The term Public Service Union is an oxymoron! (emphasis on the moron)
Alberta Union of Provincial Employee (AUPE) is 81,000 member strong. There is not even so many people in North of Edmonchuck all way to Boffin Island!
Same as the USA. Barry has been handing gubmint workers 3-5% salary increases since he got in office...while trashing the private sector.
Re-read Adam Fergusson's When Money Dies. You will otice one of the groups that did fairly well were ... the gubmint unions. It's quite a bit better these days ot be a postal employee making a [median] salary of $75k a year + health coverage+pension then a private practice family doc who has tons of loans and has to pay his/her own health coverage and pension. Also if the doc does not work, he doesn't get paid.
It's a new pardigm for sure.
I was going to use exactly those same words... "the keyword is NON-UNION worker"
And most govt. white-collar workers including professionals like lawyers, accountants and engineers are in fact UNIONIZED. Also nurses, teachers, etc. can continue to enjoy their high 5 figure salaries and annual increases with no cutbacks to speak of. A wage freeze is a good start but when oil revenue plummets 30%, a 10% wage reduction or mass govt. layoff are definitely in order.
Fuck you Loony Pols. Take a PAY CUT !
But who would do the work that "normal Canadians" just won't do? Goverment employees need meters to read, breaks to take, regulations to write, new autos to ride around in...looking at and inspecting things!
Why, the whole edifice of government working for the common man thingy could fall flat on its face without the government worker!
Jobs! Jobs! Jobs! ;-)
Right you are. I mean.....how else can all that new porn made everyday get inspected so as to meet those stringent Canadian Standards? Not to mention.....whose going to Close Caption all that French porn coming from Quebec ?
oui......Oui....Oui.....OUI......OUI.....OUIIIIIII !!!!!
(yes) (Yes) (Yes) (YES) (YES) (YEESSS) !!!
And who is make gravy and goat cheese for cover deep fry potato to make famous meal name after Russian President!?
LOL !! Clever.....very clever.
Who is care!? As long as do not close Labatt Brewery and Canadian Club, everyone is survive economic downturn.
Especially in Belgium and France!
The salary freeze is for non union employees so it is comparably small and for the most part non newsworthy.
In the normal public sector in alberta most are subject to far more than a rate freeze. As an executive for an oilfield construction company in alberta who has only taken a modest rollback in wage I know that im lucky.
Regarding the article talking about the massive cost of living increase canadians have experienced, i can tell you that the premise of the original article was bullshit.
In Alberta we have seen a modest increase in the cost of imported groceries but nothing like was reported. Prices in nunavut or in the northern territories of canada are always high. The fact that they have grown higher is logical.
Most yankees dont understand that it is perfectly reasonable for people living way up north to pay an arm and a leg for diapers. The reality for most canadians is that generally produce has gone up in price moderately.
Exceptional!!!
Sorry, I really can't help myself sometimes ;-)
"we must deal with the economic realities we’re facing.” Who said that!? Who fucking said that!? whos the wise guy round heres?
Can't be a Keynesian thats for sure.
More than likely this should be viewed as a good faith effort on "the managers" part, to be rewarded handsomely in their retirement, six months from now ;-)
Yes, let us view that statement without the redaction shall we? "Now that I have enjoyed a long and successful career looting the public fisc, and am well set up for a retirment full of many years of hookers and blow, "WE" must deal with the economic realities "we’re" facing. Godspeed my fellow countrymen".
Pretty much my man, pretty much. But THIS is called "financial responsibility" in some quarters.
As the thieves slide out the back door ;-)
Aye, we know it, deep down.
We don't like bragging much though.
Open wider loonie honeys, this recession might last awhile.
How do you get tan in Kanukistan?
Spray on, faker bakers. Those girls look like they're from New Jersey.
Toronto is slightly closer to the equator than Milan.
U trying to make me have an heart attack? I can't stop laughing.
free Catalonia
Toronto 43°42?N 79°24?W
Milan 45°28?N 09°11?E
You can breathe now.
Thank You. keep up the good work.
Alberta girls are generally very attractive though.
The ones in the photo above appear to have all been cloned from the same trashy looking middle class house wife, hair color aside.
It's try one, get two free.
Chipotle specials, 24/7
BYTP. single ply--- Jimmy Cramer.
Yeah right,
Some are attractive but most are 300 lbs walking around with their pail full of 7/11 slurpee and industrial size bag of potato chips. And that's just for breakfast!
"Alberta girls are generally very attractive though."
...after 8 or more beers
LOL..
Table A2.3
Canadian Government Pension Plan Obligations, Assets and Funding Ratios
Pension Benefit Obligations Pension Plan Assets Unfunded Pension Liability1 Funding Ratio (Assets/Obligations)
(per cent of GDP)2 (per cent)
Federal government 13.1 4.5 8.6 34.3
New & Lab 39.8 26.0 13.8 65.3
Prince Edward Island 44.4 43.6 0.8 98.2
Nova Scotia 9.3 6.8 2.6 72.6
New Brunswick 38.7 36.1 2.6 93.4
Quebec 25.3 13.8 11.5 54.6
Ontario 15.6 17.0 -1.4 108.7
Manitoba 13.1 8.8 4.2 67.5
Saskatchewan 9.8 0.8 9.1 7.7
Alberta 20.6 15.4 3.7 74.9
British Columbia 24.9 23.8 1.1 95.6
Yukon 7.6 6.5 1.2 84.9
Northwest Territories 2.0 1.3 0.7 66.4
Nunavut 0.6 0.3 0.4 41.8
Total 33.0 20.7 12.2 62.9
Nunavet & Saskatchewan seem "slightly" out of balance with the rest ;-)
Fixed. The table won't format right so the budget link is below. Looks like Canadian unfunded pension liabilities are in a bit better shape than the US in some respects. It varies quite significantly by province though. Well the collapse.
It should go: Freeze salaries, cut salaries, freeze benefits, cut benefits, default, lose pay and benefits then lose unfunded liabilities. Worse case the currency crashes and they steal it all even what's left in the funded pensions. You'll have to ask the woman in charge about her plans at this point in time.
http://www.budget.gc.ca/2015/docs/plan/anx2-eng.html
Pretty much everyone's in the same boat just some worse of than others. No better reason to pull together to prevent the problems up front than have to fix worse ones later. That will never happen with everyone's individual governments (corporations) fighting a protectionist battle in the race to the bottom.
All my best to you and yours. Especially those I've played sports against over the years.
i believe nmewn, that between the Nunavet and Saskatchewan provinces there are only about 500 people with about 500,000 grizzly Bears. i can state with utmost certainty that the last 2 years of recessionary and unfunded liabilities has been because of the bear market in inequities.or some similar fucktuation:) NEXT QUESTION PLEASE.........................;)
I live in Saskatachewan and couldn't care less about unfunded liabilities and the like. I look after myself and am not counting on the federal and provincial government for any help regarding myself or the future of my kids. Governments are too incompetent to be relied upon. Fun fact about Saskatchewan - There are approximately 1.2 million people in a province with a land mass larger than California. Southern part wheat fields and potash and oil, northern part uranium, lakes, trees rocks, gigantic northern pike and lake trout and more moose and deer than humans. I FUCKIN' LOVE IT!
My brother has a quarter section near the Alberta border. Its a beautiful place indeed.
You also have the only decent provincial premier.
Fun facts:
Saskatchewan has more resources and a more favourable climate than Alberta.
Both provinces joined Canada at the exact same time (1905) and were actually part of the North West Territories. The bankers in Toronto split it into two provinces so neither province would ever be able to challenge Eastern Canadian supremcay.
Alberta's population today is 4 million, Saskatchewan's is 1 million.
The difference?
Saskatchewan elected socialist governments for most of it's history. Alberta did not.
Ironically - Alberta today has a socialist government. Saskatchewan does not.
http://iwuz.me/2015/05/01/socialism-remembered/